Please find the Q2 2023 Financial and operational update attached. The update can also be found on the investor section on our web page.

Operational update:


Progress on E-Align100 and E-Align25

E-Align100 was successfully launched at the end of June with characterization completed showing very good performance with low variation for key parameters which should imply a good yield as well. Next up will be to focus on developing E-Align25 as a commercial product as well as continued testing of bonding to aluminium, initially aiming for RFID applications. Initial work will also start on E-Align8, aimed at micro-LED application for a global lamp producer. 


Contract Manufacturing Organization (CMO) Negotiations

CondAlign is in active negotiations with CMO’s to secure volume production for delivery of E-Align to the market in 2024. The CMO evaluation is completed with all candidates being capable and interested in producing E-Align on behalf of CondAlign. The final selection, which is expected in the coming period, will likely be driven by commercial terms.


Expanding Customer Base and Sales Efforts

CondAlign has witnessed increased interest, especially from the US and Asia, resulting in two Q2 purchase orders for our E-Align100 product. As we prioritize sales conversions and broadening our customer reach, our sales infrastructure was enhanced in Q2 with a new VP of Sales & Business Development. Feedback for E-Align is consistently positive, often surpassing competitors. Our streamlined sales process has accelerated client engagement, and word-of-mouth referrals are boosting our visibility. As we fortify our global presence, we're eyeing the establishment of a broader network of sales representatives.


Organization Growth and Development

Our organizational evolution is progressing according to plan, and we are elated with our capability to attract top-tier talent, underscoring the inherent potential and merit of CondAlign and our groundbreaking technology. The recent integration of a Senior Engineer and a VP Sales & Business Development has added capacity within both R&D and sales. This growth trajectory has also seen the addition of a permanent CFO and a new office manager. Our technology unit will be further enriched with the inclusion of three PhDs during Q3, and our production arm has welcomed a QC engineer.


Collaboration with Saint-Gobain on Thermal Interface Materials

CondAlign and Saint-Gobain are progressing well in our joint development of thermal interface materials for EV batteries and electronics applications. Work package III is expected to be successfully completed this fall, laying the groundwork for future commercial discussions.


Financial update:

The accounts for Q2 2023 show a negative net profit of NOK 6.3m, compared to negative net profit of NOK 4.0m in Q2 2022. Capitalized internal costs were NOK 3.2m in Q2 2023, up from NOK 2.9m in the same period in 2023, due to the Innovation Norway EL-Tape project.

The Company has a cash position of NOK 13.8m as of Q1 2023. The Company has an undrawn credit facility of NOK 5.0m. Total liabilities at the end of the period equal NOK 25.2m, including accrued interest and leasing obligations.

The total equity is NOK 16.2m, with an equity ratio of 39%.


For more information, please contact:
Håvard Lien-Kvareng, CFO
hlk@condalign.no
+47 996 41 809

About CondAlign:
CondAlign is a Norwegian technology company developing and supplying conductive films for connecting electronics and transferring heat. CondAlign’s products address existing and new markets within electronics and e-mobility. The patented technology enables development of new break-through consumer products as well as industrial applications, providing improved performance, sustainability and cost savings.
CondAlign is based in Oslo, Norway with a global customer footprint.